Lassila & Tikanoja has approved a partial demerger that will separate its circular economy operations, enabling the Finnish waste manager to operate two independently listed companies.

The environmental service provider will form a new independent listed company, also named Lassila & Tikanoja. The current organization will be renamed Luotea, per the latest shareholder meeting. The restructuring is designed to give each business a clearer strategic focus, improve operational transparency, and enable more targeted capital allocation.

The company enters the demerger with improving financial performance. For January–September 2025, it generated EUR 571.4 million in net sales and raised adjusted operating profit to EUR 37.7 million. In October, it upgraded its 2025 outlook to EUR 44–48 million. Lassila & Tikanoja targets 4–5 percent annual organic growth, an adjusted EBITA margin above 5 percent, and operating free cash flow exceeding 90 percent of EBITA.

The new Lassila & Tikanoja will be led by a five-member board chaired by Jukka Leinonen, with Sakari Lassila as vice chair. Teemu Kangas-Kärki serves as a member alongside the only new 2025 additions, Tuija Kalpala and Anna-Maria Tuominen-Reini, according to Listeds data.

Luotea will focus on property maintenance, cleaning and support services, security services, HVAC and technical facility services, energy-efficiency work, and related consulting. It may also manage group financing and hold or lease shares, securities, and real estate. Its target market totals approximately EUR 12.2 billion across Finland and Sweden, with expected annual growth of about 4 percent, according to the parent's estimate. Luotea will have a six-member board chaired by Johan Mild.

The transition is conditional upon the demerger’s completion at year-end. Trading in the shares of the new Lassila & Tikanoja is expected to begin on 2 January 2026.

Follow Lassila & Tikanoja's moves on the Listeds data platform here.